Not only will a tracker reduce your car insurance – it also makes your car less appealing to thieves which is why car insurance companies encourage the fitting of them.
It sounds like a win-win, and for most drivers it is but there are some issues you’ll need to understand first.
What is a car tracker?
The first issue is to understand what a car tracker is.
A tracker is an electronic device installed in your vehicle which usually utilises Global Positioning System (GPS) technology and a mobile phone network.
This will help pinpoint quickly and easily your car’s location and transmit that data to a monitoring centre or a smartphone app.
This allows you, or a recovery company, to track your car’s whereabouts in real-time in case of theft.
That also means the police will get access to the information to catch the thieves.
The tracker will be hidden within the car and a warning window sticker will help deter thieves.
Recover a stolen car
Along with deterring theft in the first place, stolen vehicles equipped with trackers statistically have a much higher recovery rate.
This is a major advantage for insurance companies because there’s a lower payout – which impacts your car insurance premium.
Car tracker features
Modern vehicle trackers offer a range of features beyond simple location tracking.
Some models offer features like impact detection, which can help identify fraudulent accident claims.
Again, this benefits insurers and can lead to lower premiums.
Other tracker features include mileage monitoring and curfew alerts to help encourage safe and responsible driving habits – and lower premiums.
Be aware though that not all car trackers are created equally.
If you want to reduce your car insurance, then opt for Thatcham-approved trackers.
Thatcham is a UK organisation which rigorously tests and certifies security products for vehicles.
Having a Thatcham-approved tracker offers a higher level of security and recovery potential – which brings peace of mind to you and your insurer.
Car insurance firms
However, not all UK car insurance companies offer discounts for trackers so it’s always best to check first or shop around.
Some insurers might offer a flat discount, while others might base the discount on the specific features and Thatcham rating of your chosen tracker.
You might also find that the model you drive means car insurance firms won’t insure it without having a tracker fitted.
And should you have a history of making car insurance claims, then fitting a tracker might not deliver lower premiums.
Car tracker costs
Another issue to consider is the cost of the tracker.
While trackers can potentially lead to lower premiums, there is an upfront cost of purchasing and installing the device.
Also, most trackers require monthly subscription fees for features like real-time tracking and recovery services.
Before investing, it’s crucial to calculate the potential savings on your premium over the life of the tracker to see if it outweighs the initial investment and ongoing costs.
Though that peace of mind knowing you’ll stand a better chance of recovering your pride and joy if it’s stolen will be worth the investment.
Can I fit a car tracker?
Having discussed the potential of saving cash on car insurance, and working out the installation costs, there are other considerations
You’ll need to research the market or seek expert advice because you’ll want to know where the device will be placed.
That might mean drilling in a vintage vehicle or a high-end motor.
Negotiating with your car insurer
Having a car tracker installed can be a smart security measure, but it can also be a bargaining chip when negotiating your car insurance premium with your provider.
Here are some tips to help you get the most out of your tracker in terms of reduced costs:
Documentation
- Tracker installation certificate: This document verifies the type of tracker installed, its Thatcham rating (if applicable), and the installation company’s details
- Tracker features: A detailed list of your tracker’s functionalities, such as real-time tracking, recovery assistance, impact detection, etc
- Quotes from other insurers: Researching and obtaining quotes from other insurers offering discounts for trackers strengthens your position when negotiating with your current provider.
Conversation
- Contact your insurer: Don’t wait for renewal; inform your insurer about your tracker installation proactively
- The benefits: Explain how the tracker deters theft, aids recovery and can reduce fraudulent claims
- Be polite: Ask for a discount to match the improved security measures.
Reducing car insurance bills with a car tracker
While there’s no guaranteed reduction in a car insurance bill for installing a tracker, it can be a worthwhile investment for many UK drivers.
By deterring theft, helping recovery, and potentially reducing fraudulent claims, trackers offer benefits to both you and your insurer.
However, it’s crucial to do your research, understand your specific situation, and choose a Thatcham-approved tracker that meets your budget and driving needs.
